SINGAPORE--(BUSINESS WIRE)--A.M. Best has affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” of PVI Reinsurance Joint-stock Corporation (PVI Re) (Vietnam). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect PVI Re’s balance sheet strength, which A.M. Best categorizes as strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
PVI Re’s risk-adjusted capitalization remains strong, supported by a large proportion of investments in cash and deposits and a low net underwriting leverage. PVI Re has achieved a strong operating performance over the past five years, with an average combined ratio below 85% and an average operating ratio below 65%, outperforming local and regional peers. PVI Re benefits from its affiliation with PVI Insurance Corporation (PVI Insurance), the market leader in Vietnam’s energy and property insurance market.
Offsetting rating factors are the limited scale and size of PVI Re’s operations compared with other regional non-life reinsurers. The company’s presence in Vietnam’s reinsurance market remains modest, and it relies significantly on its sister company, PVI Insurance, for business volume and underwriting profit.
Positive rating actions could result from a higher capital base and a stronger profile in PVI Re’s domestic market. Conversely, negative rating actions could occur if PVI Insurance’s business volumes decline substantially or if PVI Re’s performance weakens materially.
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
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